What is the relationship between education and economic growth?
Education and economic growth are largely linked to economics, because the level of formal education is higher or more widespread, the more it seems that it changes the efficacy and innovative capacity of the population. In this respect, the workforce capabilities are referred to as working capital and primary and university education can increase the value of this capital. While in many poorer countries the general education of the population in the past was considered expensive and unnecessary, research at the end of the 80's and early 90 years is a misconception. Education of the general population has a major impact on economic development through three primary means: increased productivity, promotion of innovation and rapid acceptance of new technologies. This is the fact that the cultural variables can distort the value of formal education, such as how well the public education system is, what is the state of health and nutrition for children and to what extent society contributes to informally passing on to young, knownas tertiary education.
In developing countries such as Ghana, Uganda and South Africa, certain common trends have been observed, which are considered universal. Overall, education increases the standard of living, but the most important impact on the economies is clear only where major changes occur both at higher and level of basic education. It has also been shown that investment in basic education has a lower positive impact on the lives of most dollar people per dollar versus the same investment in infrastructure and other key aspects of the economy.
Business cycle in some countries The advantages of strongly processing policies that increase the level of trade compared to first focus on education and economic growth. This may be caused by bias in research, because the statistics of education in microsocia or family and business scale tend to show much more positive contributions to the economy than in mAcroeconomic scale. Statistics also focus on the quantity above the quality of measuring the level of education by counting the average number of formal school years completed resident residents instead of looking at the quality of education itself.
most research of education and economic growth since the 90s focused on popular endogenous growth theory. These theories show that improving education in developing countries increases the rate at which the populations are able to accept better technologies and industrial processes for efficient production of goods and services. Therefore, education and economic growth clearly increase the standard of living of the poorer nations to those parallelized by technologically advanced societies. However, the same model cannot be used to support the idea of education and economic growth in countries that have already accepted such technologies and have a relatively high standard of living. This assumption is used to explain why the Earth as South Korea has had much faster growth in recent decades thanthose such as the United States.